CHAPTER-5 DEMYSTIFYING THE KEY TOUCH POINTS

Transcription

1 CHAPTER-5 DEMYSTIFYING THE KEY TOUCH POINTS 5.1 Introduction: Chapter 4 was based on the first objective to identify the determinants of customer experience. It identified four factors that impacts customer experience. One of the identified determinant was the customer emotions at key customer touch points. Before studying the customer emotions at the touch points, it is imperative to identify the touch points in a retail bank in Indian Context. Once the touch points are identified then the flues that are sent by the service provider at these touch points need to be analyzed. These clues have a major impact on the customer emotions. It might result in positive emotions that would lead to positive customer experience and alternatively it might result in negative emotions that would lead to negative customer emotions. Chapter 5, is based on the Second objective of the study to identify the key touch points in a retail bank in India. This chapter explains how the key customer touch points in a retail bank are identified, how important are these touch points and the clues that are sent to the customers at these key touch points. 5.2 Touch Point: Tom Bradbury and Doug Coons (2007) defined a touch point as all of the communication, human and physical interactions a customer experiences during their relationship lifecycle with an organization.he also provided the steps to design the right customer experience. The first step he quoted was to identify all the touch 71

2 points. Hence, to have the right customer experience, the first step is identifying the touch points. 5.3 Qualitative Primary Data Collection: Interviews and discussions were conducted with assistant managers, deputy managers, managers and senior managers of the two banks, Standard Chartered bank and State Bank of India were conducted to identify the touch points in the retail banks. Based on these interviews and the discussions the following 25 touch points were identified: S No Customer touch Points Experience Stage 1 Phone banking Pre Purchase 2 Mailers Pre Purchase, After Purchase 3 Parking Pre Purchase 4 Website Pre Purchase 5 Promotional Activities Pre Purchase 6 Sales desk During Purchase 7 Assets desk During Purchase 8 Account Opening During Purchase 9 Banking Hall During Purchase, After Purchase 10 Customer Service desk After Purchase 11 Tellers After Purchase 12 Branch Manager After Purchase 13 ATM After Purchase 14 Net Banking After Purchase 72

3 15 Mobile Banking After Purchase 16 Investment advisor desk After Purchase 17 Relationship Managers After Purchase 18 SMS alerts After Purchase 19 Debit Card After Purchase 20 Cheque Book After Purchase 21 Passbook / Account Statement After Purchase 22 Loan Recovery Desk After Purchase 23 Rest Rooms After Purchase 24 Lockers After Purchase 25 POS purchase After Purchase Table 5.1 List of Initially identified Touch Points Review of literature revealed that among the identified touch points, choosing the most relevant and important touch points for both the customers and also for the bank is the key for providing a positive and consistent customer experience. It is also the 2 nd step prescribed by Tom Bradbury and Doug Coons (2007). So, the above list is taken for further discussions with the managers, senior managers and customers of the two banks. The list was then refined to 12 key touch points as below: S No Customer touch Points Experience Stage 1 Phone banking Pre Purchase 2 Website Pre Purchase 3 Sales desk During Purchase 4 Account Opening During Purchase 73

4 5 Banking Hall During Purchase, After Purchase(Predominantly) 6 Customer Service desk After Purchase 7 Tellers After Purchase 8 Branch Manager After Purchase 9 ATM After Purchase 10 Net Banking After Purchase 11 Mobile Banking After Purchase 12 Relationship Managers After Purchase Table 5.2 List of shortlisted Touch Points Literature review revealed that the customer experience has three dimensions based on clues. Leonard L Berry, Lewis P. Carbone and Stephan H. Haeckel (2002), insist that a company's first step toward managing the total customer experience is recognizing the clues it is sending to customers. Experience clues generally fall into three main categories: functional, mechanic and humanic. These clues are those three dimensions. The functional clue deals basically with the functionality aspect of the product or service and is more rational. But, the Mechanic and Humanic clues are emotional in nature. Colin Shaw (2007) also confirms the same by finding from their research that 50 percent of customer experience is about Emotions and the balance is on functional aspects. So at each touch points what are the ideal emotions that drive value and what are the emotions that destroy value needs to be identified. As per the research done by Colin Shaw and team, there are totally 20 emotions that drive or destroy value. These 74

5 emotions have been selected by applying scientific and statistical methods. There are 4 clusters of emotions that comprise the 20 different emotions. There are 2 emotions in advocacy cluster, 5 emotions in Recommendation cluster, 5 emotions in attention cluster and 8 emotions in destroying cluster. From the emotional consumption set of Richins (1997), the emotions like Frustrated & Miserable Fulfilled, Happy and Excited were selected. The emotions Frustrated and Miserable would destroy value and emotions like Happy and Excited would drive value. The emotion Fulfilled, is chosen as the neutral point. Instead of 5- point scale, a scale with the discussed emotions are used as 5 points. This scale is similar to the scale developed as emotional signature by Colin Shaw (2007). Managers, senior managers and key Customers of the above two banks were also consulted before finalizing the emotional scale and selecting the emotions that drive or destroy value. The next step is to find the various clues that banks are sending to the customers during their interaction at these 12 chosen key customer touch points. During these interactions, customer learn about the company, service, employees, process etc quoted by LRA Worldwide Inc (2007). Leonard L. Berry, Lewis P. Carbone and Stephan H. Haeckel (2002) also confirm that every clue conveys a message to the customer who is interacting at the touch points. The functional clues at the chosen 12 key touch points are identified with the discussions with the managers of the two banks and are presented in the following section of this chapter. The identified clues are classified into three categories as Functional, Mechanic and Humanic Clues and are discussed in this chapter at all the 12 key touch points. 75

6 5.3.1 Phone Banking: Phone banking is one of the channels through which the customers interact with the bank. They get various services done through the phone banking channel. For instance, standard chartered bank in India offers the following services through phone banking: a) Quick access to the account after confirming the last 4 digits of debit card b) Intelligent identification of past transactions c) Request for a printed version of statement of accounts d) Individual account level information on all credit cards Figure 5.1 Clues at Touch Point - Phone Banking 76

7 Phone banking is one of the important touch points and also an important banking channel. Lot of services are being delivered through phone banking. The following are some of the services that can be performed through phone banking: a) Balance Enquiry b) Product Enquiry c) Process Enquiry d) Location Enquiry e) Transaction Enquiry f) Cheque book request g) Debit card related request h) Stop Payments etc But, there are various problems associated. This is not a face to face service encounter. This is a phone encounter. The interaction through phone is very crucial as the time involved, complexity of using the channel, tone of voice of the service provider, choice of words etc have greater impact on the customer emotions. Standard Chartered Bank has even introduced a concept of VRM (Virtual Relationship Manager) who works with a set of customer just over the phone. Lot of security issues are also involved in phone banking. To avoid this banks are also providing T-Pin. It is a unique telephone identification number that can even be changed according to customer choice like the debit / ATM card pin. 77

8 Figure 5.2 Touch Point1 - Phone Banking Table 5.3Frequency Touch Point 1 Phone banking The data presented conveys that 35.3% of the total respondents have experienced negative emotions with respect to their Phone banking usage. Only 48.7% of the respondents have experienced postive emotions at this touch point. This means that the bank has an opportunity to transform the remaining 64.7% of the total respondents to have positive emotions by providing positive customer experience clues at this touch point. 78

9 Table 5.4Cross Tabulation Touch Point 1 Phone Banking Figure 5.3 Cross Percentage Touch Point 1 Phone Banking The chart above shows that 26% of the respondents who were account holders of Standard Chartered Bank have experienced postive emotions and 13% of the respondents who were account holders of SBI have experienced positive emotions with respect to the touch point Phone banking. 11% of the respondents who were account holders of SCB and 24% of respondents who were account holders of SBI have experienced negative emotions during their interactions in the Phone Banking. 79

10 5.3.2 Website From the company website customer gain lot of information about the bank, its products or services before purchase. The information on products and services available in the site is useful for comparisons with other banks. Even after opening the account, the website plays a major role in providing information on products, services, processes and online forms to assist in getting the required services done. Figure 5.4 Clues at Touch Point - Website 80

11 5.3.3 Sales Desk Sales desk is a place where the branch sales happen. Most of the sales closures happen here. Customer after studying the bank, the products and services completes the purchase here. Figure 5.5 Clues at touch point Sales Desk Sales desk is a place where the customer enquires about various products and services of the bank and apply for the same. This is the place where the customer purchases the service from a bank. This is the touch point wehre the customer enters into a face to face encounter with the service provider. The responses from thesurvey 81

12 participants reveals the following emotions expereinced by them during thir interaction with the service provider at this touch point: Figure 5.6 Frequency Touch Point 2 Sales Desk Table 5.5 Frequency Touch Point 2 Sales Desk From the above chart and the table, it is infered that 35.1% of the respondents have experienced negative emotions and 32% of the respondents have experienced positive emotions. 82

13 Table 5.6Cross Tabulation Touch Point 2 Sales Desk Figure 5.7 Cross Percentage Touch Point 2 Sales Desk The above charts revieal that 13% of respondents who were account holders of SCB and 22% of respondents who were account holders of SBI have experienced negative emotions during their interaction at this touch point. It also reveals that 19% of respondents who were account holders of SCB and 13% of respondents who were account holders of SBI have experienced postive emotions during their interaction at this touch point. 83

14 5.3.4 Account Opening Opening of the account happens after customer completes his decision making and begins once the customer completes the account opening documentations. The account opening process ends after the customer receives the cheque book, debit card, debit card pin, related information in hand and once the account gets activated. Normally banks send a kit that contains a cheque book, debit card, product information, Terms and conditions, BCSBI code, etc. This kit is called as welcome kit. Figure 5.8 Clues at Touch Point Account Opening Process 84

15 Though customers receive their welcome kit, they would not be able to operate the account unless and untill the account is activated. Now a days, banks send a welcome sms and even make a phone call to welocme their customers soon after the account is activated. Table 5.7 Frequency Touch Point 3 Account Opening Process Figure 5.9 Frequency Touch Point 3 Account Opening Process 85

16 The above chart and table reveal that 25.6% of the total respondents have experienced negative emotions and 37.5% of the total respondents have experienced negative emotions during their interaction at this touch point.it is interesting to note that the account opening process itself evokes frustration for 7.6% of the total respondents and 18% of the total respondents felt miserable during their interaction at this touch point. Standard Chartered bank, offers insta-welcome kits to their customers to avoid the delay in trasmit of the welcome kit in a regular process. Insta-welocme kits are issued to the customer instantaneously at the time documentation for account opening itslef. One disadvantage is that insta kits do not have customized cheque leaves or customized debit cards. But, the subsequent cheque books and debit cards will be customized i.e customer name would be printed on it. Table 5.8 Cross Tabulation - Touch Point 3 Account Opening Process 86

17 Figure 5.10 Crosss Percentage - Touch Point 3 Account Opening Process The chart and the table above reveals that 4% of the respondents who were account holders of SCB and 21% of respondents who were account holders of SBI have experienced negative emotions during their interaction through the account opening process. It also reveals that 24% of the respondents who were e account holders of SCB and 14% of the respondents who were account holders of SBI have experienced positive emotions during their interaction though the account opening process. 87

18 5.3.5 Banking Hall Banking hall is the main place where the internal look and feel of the branch appeals to the customers. It is a place where the customers and people who visit the branch occupy. All the product merchandize is also displayed. This is the very first place to meet and greet the customers who enter the hall. This is the place where customers many a times are left un-attended. Banks that are customer focused have a concept of Meeter-Greeter where in a staff is assigned a role to receive the customer, greet and guide him to the concerned desk. Figure 5.11 Clues at Touch Point Banking Hall 88

19 Banking hall is identified as one of the important touch points in a bank. Banking hall is a place where customers wait, walk through and observe. Banking hall, often referred as bank lobby is one of the crucial spot of the servicescape. Figure 5.12Frequency Touch Point 4 Banking Hall Table 5.9 Frequency Touch Point 4 Banking Hall The chart and table reveal that 17.3% of the respondents have experienced negative emotions during their encounter at this touch point and 50.7% of the respondents have experienced positive emotions during their encounters in the banking hall. 89

20 Table 5.10 Cross Tabulation Touch Point 4 Banking Hall Figure 5.13Cross Percentage Touch Point 4 Banking Hall The above table and the chart reveal that 2% of respondents who were account holders of SCB and 15% of respondents who were account holders SBI have enperienced negative emotions. It also reveal that 38% of respondents who were account holders of SCB and 14% of respondents who were account holders of SBI have experienved positive emotions during their encounter in the baning hall. 90

21 5.3.6 Customer Service Desk After opening the account, customers approach this desk for any service, information on service or deficiency in service. Apart from the website this is the desk that serves as a complete source of information form branch timings, queries on list of holidays to schedule of charges and complaints. This acts as the face of the bank to the customers. All the customers look at the face of the bank. Banks have a turnaround time (TAT) specified for all the service they render. Figure 5.14 Clues at Touch Point Customer Service Desk 91

22 Customer service desk is a place where customers visit for various service requirements in the form of enquiries, request and complaints. This is one of the major touch points where majority of the customers who visit the bank would have a face to face interaction: Figure 5.15Frequency Touch Point 5 - Customer Service Desk Table 5.11 Frequency Touch Point 5 - Customer Service Desk 92

23 The chart and the table above reveal that 35.1% of the respondents have experienced negative emotions and 36.3% of the respondents have experienved postive emotions during their interactions at this touch point. Table 5.12Cross Tabulation - Touch Point 5 - Customer Service Desk Figure 5.16Cross Percentage - Touch Point 5 - Customer Service Desk The chart and the table above reveal that 6% of respondents who were account holders SCB and 22% of respondents who were account holders SBI have experienced negative customer emotions during their interaction at this touch point. It also revela that 27% of respondents who were account holders SCB and 9% of respondents who were account holders of SBI have experienced positive customer emotions during their interaction at this touch point. 93

24 5.3.7 Teller Desk Most of the customers, who visit the bank, would come to the teller counter. Teller counter and teller desk represent the same. Customer transactions at tellers would include, depositing a cheque, withdrawing cash from the account, depositing cash to the account etc. Banks have a turn-around time for all the services that delivered thro the teller counters too. Recently, the teller counter is becoming a hot spot for cross sale and lead generations. Figure 5.17 Clues at Touch Point Teller Desk 94

25 Teller desk is one of the key customer touch points of a bank. The majority of the customers entering the bank rather the majority of the footfalls occurs in this touch point. Teller plays a crucial role in a bank. Tellers need to do their job with atmost care, accuracy and alertness. Apart from this operational view, they should also ensure good customer service. Figure 5.18Frequency Touch Point 6 Teller Desk Table 5.13 Frequency Touch Point 6 Teller Desk The above chart and the table reveal that 27.5% of the respondents have experienced negative emotions and 34.9% of the respondents have experienced positive emotions during their interactions at teller desk. 95

26 Table 5.14 Cross Tabulation Touch Point 6 Teller Desk Figure 5.19 Cross Percentage Touch Point 6 Teller Desk The above table and chart reveals that 9% of the respondents who hold accounts with SCB and 18% of the respondents who hold accounts with SBI have experienced negative emotions during their interaction at this touch point. It also revealsed that 23% of the respondents who hold accounts with SCB and 11% of the respondents who hold accounts with SBI have experienced positive emotions during their interaction at this touch point. 96

27 5.3.8 Branch Manager Branch Manager is the head of the branch. With around fifty quantitative and qualitative performance indicators, the role of a manager of a retail bank is very challenging and exhausting. He has an important role in taking care of his branch customers. He is the immediate point for escalation of all the complaints or deficiency in services. So, his prudence, skills and leadership in managing customers and their relationships is crucial at all times. Figure 5.20 Customer Touch Point Branch Manager 97

28 Interactions with the branch manager is also identified as one of the key touch points of the bank. Any customer complaints that are not resolved at the customer service desk or teller desk, gets escalated first to the branch manager s desk. Also, any approvals land on branch manager s desk. Many customers attach a close link with branch managers for banking services. Hence, branch manager was also considered as one of the key customer touch points where customer emotions need to be studied. Figure 5.21Frequency Touch Point 7 Branch Manager Table 5.15 Frequency Touch Point 7 Branch Manager 98

29 The above chart and table reveals that 30.8% of the total respondents have experienced negative emotions and 32.5% of the total respondents have experienced positive emotions during their interaction with their branch managers. Table 5.16 Cross Tabulation Touch Point 7 Branch Manager Figure 5.22Cross Percentage Touch Point 7 Branch Manager The above chart and the table reveal that 9% of the respondents who hold accounts with SCB and 21% of the respondents who hold accounts with SBI have experienced negative customer emotions during interaction with their branch managers. It also reveals that 18% of the respondents who hold accounts with SCB and 14% of the respondents who hold accounts with SBI have experienced positive emotions during their interaction with their branch managers. 99

30 5.3.9 ATM Automated Teller Machines (ATM) is one of the important channels of banking and a prominent customer touch point. Customer use the ATMs more frequently in India as much of the business transactions that are being carried out in cash. Banks, extend a vast array of services thro these ATMs. For instance, Standard Chartered Bank India offers the following services through their ATMs: Withdraw cash Express Cash Check the balance in account Request an interim statement of account. Get a 'mini-statement' of account Request for a cheque book Change Personal Identification Number Transfer funds to any SCB account in the country Deposit cash or cheques at select ATMs in the country Top up your pre-paid mobile account Register for Mobile Banking Update Mobile number ICICI bank even offers booking of fixed deposits, bill payment etc. ATM is an important banking channel. The Indian government has indigenously developed a network called as RuPay to take the ATMs to the rural areas at the cheaper rate as part of inclusive growth and banking for all motives. 100

31 Figure 5.23 Clues at Touch Point - ATM Net Banking Net Banking is yet another important channel in modern times. All tech savvy customers are migrating to net banking because of convenience, speed and 24*7 banking. Banks offer a variety of services in an innovative way to their customers. For instance the following are some of the services offered in net banking by standard chartered bank in India: 101

32 Account Information Funds Transfer Bill Payments Credit cards services etc Figure 5.24 Clues at Touch Point Net Banking Net banking is one of the important banking channels. The banking services through online has resulted in huge benefits to both customers and the banks. Net banking was hence considered as one of the key customer touch points. 102

33 Figure 5.25Frequency Touch Point 9 Net Banking Table 5.17 Frequency Touch Point 9 Net Banking The above chart and table reveals that 31% of the respondents have experienced negative emotions and 38.4% of the respondents have experienced positive emotions during their interaction at this touch point. 103

34 A host of services are being delivered through the online banking facility and is user friendly. Banks are also offering online demo to use the online banking and even the demo can be done through phone banking also. Customers can monitor their bank accounts, place requests for various services, lodge complaints, perform transactions, pay bills, etc. The introduction of net banking has eliminated the option of visiting the bank for the tech savy customers as net banking is more convenient, time saving, cost saving and secure. Not only inindia, but across the world the net banking or PC banking has created great interest among the tech savy customers. Net banking offers a host of service not only for the retail customers but also for the wholesale or corporate customers. It has eliminated huge cost, time and man power in handling the bank transactions and account maintenance. Table 5.18 Cross Tabulation Touch Point 9 Net Banking 104

35 Figure 5.26 Cross Percentage Touch Point 9 Net Banking The above chart and the table reveal that 8% of the respondents who hold accounts with SCB and 23% of the respondents who hold accounts with SBI have experienced negative customer emotions during their interaction at this touch point. It also reveal that 28% of the respondents who hold accounts with SCB and 11% of the respondents who hold accounts with SBI have experienced positive customer emotions at this touch point. Standard Chartered bank offers separate online banking platform to their whole sale banking customers called as Straight2bank. 105

36 Mobile Banking Mobile Banking is another channel that is being widely used recently with the innovations and developments of the smart phones. Banks are saving huge cost by migrating the customers to do their transaction in this channel. Customers get a variety of services thro mobile banking that has simplified banking system to a greater extent. For instance standard chartered bank India, with an application Breeze, offer the following services to their customers: 1. See Your Money 2. Move Your Money (Funds transfer and Bill Payments) 3. Manage Your Money Figure 5.27 Clues at Touch Point Mobile Banking 106

37 The introduction of smart phones, triggered the mobile banking channel. It is emerging as one of the important banking channels widely. Customers can enjoy a lot of banking services through an application downloaded in their smart phone. Figure 5.28Frequency Touch Point 10 Mobile Banking Table 5.19 Frequency Touch Point 10 Mobile Banking 107

38 The above chart and the table reveal that 37.9% of the respondents have experienced negative experince at this touch point and 34.8% of the respondents have experienced positive customer emotions at this touch point. Table 5.20 Cross Tabulation Touch Point 10 Mobile Banking Figure 5.29 Cross Percentage Touch Point 10 Mobile Banking The above table and chart reveal that 9% of the respondents who hold account with SCB and 30% of the respondents who hold account with SBI have experienced 108

39 negative customer emotions during interactions at this touch point. It also reveal that 28% of the respondents who hold accounts with SCB and 8% of the respondents who hold accounts with SBI have experienced negative customer emotions during their interactions at this touch point. Standard Chartered bank has a mobile banking application by the name, Breeze and State Bank of India has a mobile banking application by the name, FreedoM Relationship Manager Relationship Managers are one point contact for the premium customers of a bank. Premium customers deal with the relationship managers for any services they require. Starting from opening the account to provide any financial solutions for both their personal and business needs is the job of the relationship manager. For such customers, those relationship managers are the banks. Bank expects these relationship managers to work closely with these premium customers so that they don t lose them to the competition and also to bring new premium customers to the bank. The role of the relationship managers has widened up from just maintain the key customer relationships to acquire new customer relationships. So, the job of relationship manager is to maintain existing customers and also to bring in new customers. 109

40 Figure 5.30 Clues at touch point Relationship Manager So, in these 12 key customer touch points, the functional, mechanic and humanic clues that evoke customer emotions have been identified through the discussions and interviews with the bank managers. Now, at these touch points the clues that have a strong impact are identified with the discussions with the managers of the two banks. Studying the functional, mechanic and humanic at each and every touch point is beyond the scope of this study. Hence, the identified clues are combined to study their impact on overall customer experience of the bank. But, the 110

41 touch point emotions are studies using the 5-point emotional scale. The literature also reviewed before finalizing the clues. 5.4 Overall Customer Experience scores at the key touch points: The overall customer experience scores from the survey respondents are tabulated as below: Table 5.21 Frequency Overall Customer Experience The table reveals that 12.6% of the total respondents strongly disagree that their overall experience with their bank is excellent, 17.3% of the respondents disagres that their overall experience with their bank is excellent, 28.9% of the respondents agree that their overall experience with bank is excellent and 11.6% of the respondents strongly agree that their overall experience with bank is excellent. 28.9% of the total respondent have chose to remain neutral. 111

42 Table 5.22 Cross Tabulation Overall Customer Experience Figure 5.31Cross Percentage Overall Customer Experience Scores - Banks The above chart and the table reveal that 10%of the respondents who hold their accounts with SCB and 20% of the respondents who hold their accounts with 112

43 SBI have disagreed that the experience with their bank is excellent. It also reveal that 26% of the respondents who hold account with SCB and 15% of respondents who hold accounts with SBI have disagreed that the experience with their bank is excellent. 5.5 Summary: In this chapter, the customer touch points in Indian retail bank is identified with the discussion with the managers and customers of the two banks. There were totally 25 touch points. Out these 25 touch points, 12 key customer touch points that have major impact on the customer experience is identified. Then at all these 12 key touch points, the functional, mechanic and humanic clues that evoke customer emotions were identified. Outof the identified clues, only the clues that have strongest impact are shortlisted and taken for studying their impact on the overall experience of a customer with a bank. As discussed earlier, with the discussions with the managers of both the banks, the following emotions were identified as relevant: Frustrated, Miserable, Fulfilled, Happy, and Excited from Richins (1997), Consumption Emotions Set. The emotions are listed from highly negative emotion to a highly positive emotion. These emotions are taken for study as a 5-point emotional scale at the 12 key customer touch points. The next chapter will discuss on the effect of demographic factors on the emotions and overall experience of a customer with a retail bank in India and that is the third objective of the study. 113